‘Governance Determines Whether Wealth Survives across Generations not Capital’

Nume Ekeghe

The Managing Director of Coronation Trustees Limited, Yemi Sadik, has said that while building wealth is a remarkable accomplishment, the ability to preserve it across generations depends largely on governance structures rather than the size of the assets accumulated.

Sadik made the assertion during a panel session titled, “Legal Structures Essential for Global Wealth Transfer,” at the Lagos Private Wealth Conference 2026, where industry practitioners in fiduciary management, estate planning and private wealth advisory discussed strategies for sustaining family wealth across generations.

According to him, governance failure remains one of the biggest threats to family wealth in Africa, outweighing concerns such as market volatility, economic cycles or business disruptions.

In a statemnet, Sadik noted that many African families already operate some form of governance framework through founders, trusted advisers, family-owned businesses and long-standing professional relationships. However, such arrangements are often informal and centred around individuals rather than institutions.

“Most African families already have some semblance of governance. The difference is that it is informal. Institutionalising that relationship is where the proper structure comes in,” Sadik said.

He explained that informal governance systems often function effectively while founders remain actively involved because decision-making authority, family values and institutional knowledge are concentrated in one individual. Challenges, however, tend to emerge during succession when future generations are expected to manage family assets without clearly defined governance structures.

Sadik stressed that trusts, private trust companies and other fiduciary arrangements should not be viewed as ends in themselves but as governance mechanisms designed to organise family influence, strengthen accountability and support long-term continuity.